Estate of Melvin W. Ballantyne, Deceased, Jean S. Ballantyne, Independent Executrix, and Jean S. Ballantyne - Page 5

                                        - 5 -                                         
          to the respective activity each brother primarily conducted.                
          Melvin and Russell generally paid the expenses related to the               
          respective activity each conducted.  Many of the assets used by             
          BBP in its activities were not held in the partnership’s name.              
          Rather, these assets were either jointly owned by Melvin and                
          Russell or individually owned by one of them.                               
               In late 1993 or early 1994, Melvin was diagnosed with                  
          pancreatic cancer, and he subsequently died on March 4, 1994.               
          The partnership automatically dissolved upon Melvin’s death.  In            
          the months leading up to Melvin’s death, some of the assets of              
          BBP were equally distributed between Melvin (or his children) and           
          Russell.  At the time of Melvin’s death, Jean, Stephen, Kab, and            
          Todd believed that Melvin and Russell were equal partners in BBP.           
               For at least the taxable years 1980 through 1994, BBP filed            
          Forms 1065, U.S. Partnership Return of Income.  Jules Feldmann              
          (Mr. Feldmann), a certified public accountant, prepared BBP’s               
          Federal income tax returns for those years.6  Melvin, Stephen,              
          and Kab provided Mr. Feldmann with financial information about              
          the oil and gas activity.  Russell, Orlyn, and Gary provided Mr.            
          Feldmann with financial information about the farming activity.             
          The Forms 1065 for 1980 through 1994 reported that Melvin and               

               6Mr. Feldmann also regularly prepared personal income tax              
          returns for Melvin and Russell for several years.  Mr. Feldmann             
          prepared Melvin’s return for 1993 and Russell and Clarice’s                 
          returns for the years in issue.                                             

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011